JPM Max Pain At 6 Month Highs

While we can argue over which exact position Iksil and his crew had on, the widening in IG9 10Y spreads post-Dimon signals an unwind of epic proportions continues. It seems the mainstream media has grown tired of discussing skews, basis, curves, tranches, and tail-risk but for those who care about the reality that JPMorgan faces - we note that the credit index most closely tied to the CIO's office debacle continues to push wider. Today sees the spread at six-month wides (up a hulking 33% since Dimon's mea crapa). Perhaps this helps explain why JPM just can't get a bid (or hold onto one even after last week's ECB/Fed print rumors) as its stock's price hovers just in the red YTD (with a $32 handle).

Seriously like if the market does crash are treasuries just going to negative? I really don't understand it. Market is still near its high, seems like its going to just correct 20% one day to even out.

And they know not to buy PMs after watching Buffet try his silver play back in the day. Because if he can get bitch-slapped by TPTB, anyone can. Besides, just look at the sweetheart deals he's gotten since (though many will once again require fedgov backup, of course).

"Who decided banks had to be all things to all customers? Weill did. Starting with a low-end lender in Baltimore, he cobbled together the first great financial supermarket, Citigroup. Along the way, Weill's acquisitions (Smith Barney, Travelers, etc.) and persistent lobbying shattered Glass-Steagall, the law that limited the investing risks banks could take. Rivals followed Citi. The swollen banks are now one of the country's major economic problems. Every major financial firm seems too big to fail, leading the government to spend hundreds of billions of dollars to keep them afloat. The biggest problem bank is Weill's Citigroup. The government has already spent $45 billion trying to fix it"

Brilliant William! Could be that the pricks have finally pricked the credit bubble!? "Look out below" for almost all assets particularly paper and digital assets. Metals will tumble too in nominal terms but NOT in purchasing power.

Tyler keeps using the term "handle" (ex from post above: JPM with a "handle at $32), but i don't understand what it signifies or how it's useful for placing a trade. Would much appreciate explanation - thanks!

JPM is part owner of fed. In other words "they are they". Here a best guess in terms of ownership of the privately held federal reserve. These stocks should always be viewed with the perpsective that they "are" The Fed.

The top 4 banks:B of A, JP Morgan Chase, Citigroup & Wells Fargo-Wachovia control roughly 54% of the stock of the Federal Reserve Bank.The top 10 banks, including Goldman Sachs, HSBC and the Bank of New York control roughly 70% of the stock.

Think of all of these entities as the "Goose that lays the golden egg." As long as the goose stays healthy, the eggs keep coming. As we see now though, they're all in their terminal stages, of which there is no escaping (as per Mises).

So, each entity faces a choice, do they kill it to their liking, or turn it into a zombie on fedgov life-support? In each case, the answer will be, whichever provides the most benefit to those holding the guns at the time.

It would be nice if everyone writing articles like that were required to disclose their positions, including their VWAP. It's all fine and dandy to go tell other people what they should do with their money, if you aren't doing it yourself.

Puts on JPM are the closest thing to a sure thing there is. Plus, you're doing something for humanity. It gives the common Joe the ability to do some good in the world. Watching Jamie die like the wicked witch getting a bucket of water thrown on her, (I'd prefer throwing a bucket of shit and piss on Jamie), gives one a warm and fuzzy feeling. I try and start my day by buying at least one or two July 34 puts onJPM in hopes that it helps ruin Jamies day. Plus I buy physical silver every week. Ha ha Jamie, fuck you...how do you like it bitch?

As demand and production of copper slows JPM silver short may have no out. Talk of JPM copper ETF may be how they are looking to offset real demand. Copper production down means byproduct silver down. Want to short JPM just buy a little more silver. The crunch is coming.

Achilles Macris, J.P. Morgan’s CIO in their London office, used the bank’s access to cheap capital from the Federal Reserve to amass his OTC derivative gamble that high yield and sovereign debt interest rates would fall, after MF Global suffered a $1.2 billion loss on similar bets and was forced to file for bankruptcy last October 30th.

Morgan’s gamble became very profitable after December 21 when the European Central Bank (ECB) began making $640 billion of three year loans at 1% interest, referred to as “Long Term Refinancing Operations” (LTROs), available to the banks of Portugal, Ireland, Italy, Greece and Spain (PIIGS). By the end of December, J.P. Morgan’s total derivative exposure was $70.2 trillion on just $1.8 trillion of bank assets, according to the U. S. Controller of the Currency. Morgan is reported to have continued heavy derivative buying in January and February. Its profits soared again when the ECB announced LTRO2 as another $714 billion in three year low-interest loans to PIIGS banks.

Everything seemed rainbows and unicorns for J.P. Morgan until France and Greece elected hardcore leftist candidates who want to abandon austerity spending cuts and increase social welfare spending. Interest rates on the PIIGS sovereign debt shot back up. My estimate is that J.P. Morgan has suffered a $7-8 billion loss since March and are at a net $5 billion loss and counting.